Saturday

The sudden loss of so many workers, particularly those in higher-paid jobs, could hurt other sectors, from real estate and retail to food service, some economic experts say.

PANAMA CITY — Bay Medical Sacred Heart’s plans to lay off hundreds of workers could reverberate through the local economy, causing reduced profit and jobs in other industries.

The sudden loss of so many workers, particularly those in higher-paid jobs, could hurt other sectors, from real estate and retail to food service, economic experts said last week. Still, the significant impact might be tempered somewhat by the high disaster recovery spending needed after Hurricane Michael, they said.

“Oh, we’re absolutely concerned,” Carol Roberts, president of the Bay County Chamber of Commerce, said of the layoffs. “It’s a real domino effect in the community … it’s not just a direct hospital impact, it’s all these other services and facilities that rely on that operation there.”

In an email to The Panama City News Herald, Martha Crombie, spokeswoman for Ardent Health Services, operator of Bay Medical, wrote that 635 employees would be laid off. Of those, a third are part-time, worked as-needed and temporary employees.

The statement comes a day after Ardent announced it estimated about half, or approximately 800 of its workers could be laid off because of the severe damage the hospital sustained from the hurricane, scaling the number back slightly.

The hospital has had only its emergency room services operational since the hurricane. The current plan is to reopen the hospital in phases, starting with 75 inpatient beds, eight operating rooms and five cardiac catheterization labs in January.

In an email to The News Herald, Phyllis Pooley, director of special projects at the University of West Florida Office of Economic Development and Engagement, wrote that hundreds of layoffs in a major industry could have multiple impacts on the economy, including loss of jobs in other businesses.

“This is because the loss of spending by these workers affects the revenue of other businesses where they shop, forcing those businesses to reduce staff as well,” Pooley wrote.

Pooley wrote that industries most impacted by the layoffs in addition to health care likely would be real estate, retail and food services.

“There is a multiplier effect involved — every dollar that leaves an economy effects all those where the dollar would be spent,” Pooley wrote.

Becca Hardin, president of the Bay Economic Development Alliance, said she expects the layoffs to hurt the area economy.

“Anytime you have something like this with a major employer, it’s a hit to a local economy,” Hardin said.

Hardin added that fewer medical services will make recruiting new industry to the county more difficult.

“When we sell a county, we sell every aspect of it,” she said.

The economy and the medical industry should bounce back though, Hardin said.

“At the end of the day, these types of medical services are needed, so someone will come in to serve those needs,” Hardin said.

Pooley wrote that while the hurricane is the reason for the job losses, it also might be what keeps the layoffs from hurting the economy too much.

“The impact will not be universal or effect all business equally as the new spending from hurricane rebuilding will offset some the spending lost with the layoffs,” Pooley wrote. “But this will be a short-term effect and may not over time counteract the permanent loss of that many jobs in a major industry.”

Kim Bodine, executive director of Career Source Gulf Coast, said her organization will do what it can to help minimize the economic hit by helping the workers being laid off.

Bodine said Career Source will provide services, including scholarships for some workers who want to retrain for a new career, or help in finding a new job in the area.

“And we can help with job placement and relocation assistance for people having to relocate for a new job,” Bodine said.